Reported profit, revenue and phone shipments were below market expectations, and shares fell more than five per cent after opening trades today.
Although BlackBerry did shift shift a load more devices than the same point last year, it is still less than what analysts were expecting.
It wasn’t all bad news. RIM reported better than expected subscriber growth, strong growth in international markets, and good sales of high-margin phones.
RIM said the below average results were simply a one-time inventory adjustment by phone companies as we left the Christmas season and went into 2010.
But it didn’t disguise the fact that RIM is being left behind when it comes to a new generation of touchscreen 3G capable smartphones.
The BlackBerry Storm for example, went down like a lead balloon with users wanting a better excellent user experience than it delivered.
The BlackBerry is still the preserve of the business user, and is very popular.
But it does seem that RIM is standing still rather than reacting to the potential threat, which is not a wise thing to do in a market that moves as fast as smartphone technology does.